Engineered components maker Crane's Q3 sales beat, partly on acquisitions

Overview

• US engineered components maker's Q3 sales rose 28%, beating analyst expectations

• Adjusted EPS for Q3 up 23% year-over-year to a record $2.05

• Company raised full-year adjusted EPS outlook, citing segment momentum and acquisitions

Outlook

• Crane raises 2026 adjusted EPS outlook to $7.23-$7.38, from $6.85-$7.05

• Company expects 2026 total sales to rise about 26% at midpoint, with acquisitions and core growth at high end of prior ranges

• Crane sees 2026 adjusted segment operating margin at about 24%, up from prior view of 23%+

Result Drivers

• SEGMENT GROWTH - Core sales growth of 9.5% at Aerospace & Advanced Technologies and 6.2% at Process Flow Technologies drove higher total sales

• ACQUISITIONS - Recent acquisitions contributed 21.1% to total sales growth and performed ahead of expectations

• ORDER BACKLOG - Total company core backlog increased 9% year-over-year, reflecting healthy demand across both segments

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Crane Company is $241.00, about 26.5% above its October 26 closing price of $190.48

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 31 three months ago

Reuters Recommended Reads

• Oct 27 - Illinois Tool Works Inc beats Q3 EPS estimates, raises 2026 outlook

• Oct 27 - Truck maker Paccar Q3 revenue beats on parts, financial services growth

• Oct 27 - Hubbell Inc beats Q3 revenue on Electrical Solutions growth, raises FY outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)